Profits prove hard to come by as EasyHotel expansion takes toll
SHARES in EasyHotel slumped yesterday as a doubling in revenues failed to translate to a substantial profits.
The chain reported a 12 per cent increase in rooms added during the six months ending 31 March, including the opening of a new hotel in Croydon adding an additional 103 rooms during the period.
However, despite reporting a 104 per cent increase in like-for-like revenues to £2.6m the firm also experienced a near doubling in administrative expenses to £1.2m, up from £580,804 over the same period last year.
Increased admin and a sharp rise in finance expenses hit the bottom line with pre-tax profits rising seven per cent to £365,352. Markets reacted with by sending shares in the company down 8.64 per cent to close at below thier float price at 74p.